Latest news with #PatrickT.Fallon
Newsweek
3 days ago
- Business
- Newsweek
Disney Layoffs Celebrated by Critics: 'Go Woke Go Broke'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Disney's recent announcement that it will be laying off hundreds from its film, TV and finance divisions has led to gloating by critics, who view this as a result of the company "going woke." Newsweek has reached out to Disney via email for comment. Why It Matters "Go woke, go broke" is a phrase that has been popularized in recent years, often adopted by conservative groups to celebrate the financial difficulties of companies they view as having embraced progressive ideals or supported left-wing political causes. It has also been used as a rallying call for boycotts of certain corporations, including Bud Light, Target, and Disney itself. While the company's overall financial performance remains strong per its most-recent results, the layoffs coincide with challenges in Disney's film businesses, in particular the underwhelming box-office performance of its live-action remake of Snow White. What To Know A report from Reuters, citing an unnamed source familiar with the matter, said that Disney plans on laying off hundreds from its film, TV and corporate finance divisions. Disney spokespeople confirmed the layoffs to the BBC and USA Today, and attributed these to the "rapid" transformation of the industry and the need to "efficiently manage our businesses while fueling the state-of-the-art creativity and innovation." The California-based company employs around 230,000 people, 60,000 of whom are based abroad. The last major layoff announcement came in 2023, when Disney said it would be reducing the headcount by 7,000 as part of a cost-cutting initiative. File photo: Fans are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California, on September 9, 2022. File photo: Fans are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California, on September 9, 2022. Patrick T. Fallon/AFP via Getty Images After the news broke, it was shared heavily online, with conservative-leaning commenters in particular celebrating. Many employed the catchphrase "go woke, go broke," while pointing to the recent release of Snow White as evidence. In addition to a weak critical reception, the film became mired in controversy due to political comments made by lead actress Rachel Zegler in the run-up to its release; the casting of a Latina actress as the titular character; and the use of CGI to reimagine the seven dwarfs. The latter also drew scrutiny from actors with dwarfism, who felt the decision deprived performers of potential roles. The film ended up a box-office bomb, grossing $205.5 million on a budget Forbes estimated at around $300 million. What People Are Saying A spokesperson for Disney told the BBC: "We have been surgical in our approach to minimize the number of impacted employees." They added that none of the affected teams would be closed down entirely. One X user reposted the news of the layoffs, writing: "Seems the only way these companies learn what viewers want is through financial lessons." "If you think Disney is correcting course by these layoffs, then you don't know Disney well enough. They're faaaaar from stepping away from WOKE," another wrote. Disney CEO Bob Iger, in response to a question on Disney's "wokeness" during a shareholder meeting last April, said: "I'm sensitive to that." Quoted by Business Insider, Iger continued: "Our primary mission needs to be to entertain and then through our entertainment to continue to have a positive impact on the world. And I'm very serious about that. It should not be agenda-driven." What Happens Next? While other recent releases—including Captain America: Brave New World, the fourth installment in the Marvel franchise—have similarly struggled to break even at the box office, Disney's remake of Lilo & Stitch remains a box-office leader in North America, already raking in $613 million globally to become the third-highest grossing film of 2025.
Business Mayor
09-05-2025
- Business
- Business Mayor
China's exports surge as shipments to Southeast Asian countries offset plunge in U.S. trade
A China Shipping cargo container sits stacked at the Port of Long Beach in Long Beach, California on April 10, 2025. Patrick T. Fallon | Afp | Getty Images China's exports surged in April on the back of a jump in shipments to Southeast Asian countries, offsetting a sharp drop in outbound goods to the U.S. as prohibitive tariffs kicked in last month. Exports jumped 8.1% last month in U.S. dollar terms from a year earlier, according to data released by customs authority on Friday, sharply beating with Reuters' poll estimates of a 1.9% rise. Imports slumped by 0.2% in April from a year earlier, compared with economists' expectations of a 5.9% drop. China's outbound shipments to the U.S. plunged over 21% in April year on year, while imports dropped nearly 14%, according to CNBC's calculation of official customs data. The surge in overall exports could be partly due to transshipment through third countries and contracts that were signed before the tariffs were announced, Zhiwei Zhang, president and chief economist at Pinpoint asset management said in a note. Zhang expects trade data to weaken gradually in the next few months. China's exports to the Association of Southeast Asian Nations surged 20.8% in April from a year earlier, accelerating from a 11.6% growth in March, while imports from the bloc increased 2.5%. Meanwhile, China's exports to the European Union rose 8.3% while imports fell 16.5% year on year. Global shipments from China had clocked a 12.4% year-on-year growth in March, as businesses rushed to export goods to avoid higher tariffs. Imports, however, had dropped by a more than expected 4.3% from a year earlier, underscoring Beijing's challenge of reviving domestic demand. U.S. President Donald Trump has placed tariffs of 145% on all imports from China, prompting it to retaliate with tariffs of 125% on American imports. So far, both sides have sought to blunt the economic impact of triple-digit levies by granting exemptions on certain critical products. The number of container vessels from China to the U.S. had dropped dramatically toward the end of April, Raymond Yeung, chief economist for Greater China at ANZ Bank said in a note Thursday. Chinese government has sought to help exporters divert sales to the home market, a move that could drive the economy into deeper deflation.
Yahoo
05-05-2025
- Sport
- Yahoo
South African men, New Zealand women win Rugby Sevens World Championships in LA
Men's and women's Rugby Sevens team captains gather for the captains' photo with the Championship trophies ahead of the 2025 HSBC Rugby Sevens LA tournament World Championship (Patrick T. Fallon) South Africa's men and New Zealand's women captured the Rugby Sevens World Championship 2025 titles on Sunday in Los Angeles. The Springbok Sevens defeated Spain 19-5 in the men's final while New Zealand's Black Ferns -- who had already claimed the sevens series title -- added to their trophy haul with a 31-7 victory over Australia in the women's final. Advertisement The season-ending LA event was staged at Dignity Health Sports Park, which will host rugby sevens at the 2028 Los Angeles Olympics. The Black Ferns, the reigning Olympic champions, had sealed first place in the women's regular season standings with a victory at Singapore in April. Argentina -- which had clinched the men's World Sevens Series standings with victories in Perth, Vancouver and Hong Kong -- fell to Spain 29-5 in the semi-finals, where South Africa dispatched New Zealand 31-5. In the men's final, Selvyn Davids scored a try in the fifth minute and Ronald Brown converted to lift South Africa ahead 7-0 at half-time. Advertisement Spain's Pol Pla answered with a try in the 10th minute but Juan Ramos missed the conversion kick to keep the Springboks ahead. Mfundo Ndhlovu answered with a try for South Africa and Tristan Leyds converted for a 14-5 lead. South Africa's Zander Reynders received a yellow card but Ricardo Duartee added a try in the final minute to complete the triumph. In the women's final, Jorja Miller scored in the second minute for New Zealand and Michaela Brake added another try in the sixth, Risi Pouri-Lane's conversion making it 12-0 at half-time for the Black Ferns. Mackenzie Davis answered with her sixth try of the event for Australia in the eighth minute and Ruby Nicholas added the conversion, but the Kiwis answered on Pouri-Lane's try and conversion in the 10th minute for a 19-7 edge. Advertisement Mahina Paul added a try in the 11th minute for the Black Ferns with Pouri-Lane converting and Sarah Hirini added a try in the 13th minute to create the final margin. In the women's semi-finals, Australia routed Canada 33-7 and New Zealand ousted the United States 34-7. js/bb
Forbes
30-04-2025
- Business
- Forbes
Consumer Food Consumption Patterns Signal Economic Downturn
Cropped picture of a senior woman holding empty shopping basket during economy crises. When economic storm clouds gather, as we have experienced over the past few weeks, the contents of our shopping carts change in subtle but predictable ways. As investors scrutinize stock fluctuations and the analysts continue to pore over employment data, we are paying attention to a different kind of indicator: what consumers are putting on their plates. Research consistently shows that food consumption patterns shift meaningfully ahead of official recession declarations, making them valuable early warning signals for businesses preparing to navigate economic headwinds. According to the National Bureau of Economic Research, changes in food purchase patterns have preceded all seven major recessions since 1980, with measurable shifts occurring 3-6 months before official economic contractions were declared. When wallets tighten, consumers don't simply buy less—they buy differently. A 2021 study from Sacred Heart University analyzed data from over 60,000 U.S. adults and children before, during, and after the Great Recession, finding distinct downward nutrition shifts in consumption patterns as economic conditions deteriorated. Adults consumed more refined grains and solid fats, while children increased their intake of added sugars during the recession. Sales of pasta, canned soups, and boxed macaroni and cheese typically increase 4-6 months before economic downturns become official. These shelf-stable, familiar options provide emotional comfort during uncertain times while stretching household budgets. Research from the USDA Economic Research Service confirms that "Low-income countries spend a greater portion of their budget on necessities, such as food" and "low-value staples, like cereals, account for a larger share of the food budget" when economic conditions worsen. Signage notes a limit due to limited quantities of eggs at a grocery store in Manhattan Beach, ... More California, on January 2, 2025. Bird flu and other factors have contributed to an egg shortage in California. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) One important example is as premium meat cuts become untenable for many households, canned tuna, beans, and peanut butter consumption rises. In the past egg consumption rose as well, but with the current price of a dozen eggs it's anyone's guess if that will occur this time. These protein substitutes offer nutritional value without the premium price tag. A study published in ResearchGate found that during economic recessions people redefine their priorities and what constitutes necessities or indulgences. Economic recessions significantly, they say, affect purchasing power, leading households to substantially reduce consumption of luxury products while shifting toward more affordable alternatives. Flour, sugar, and basic baking supplies see notable upticks as consumers trade restaurant experiences for home-cooked alternatives. During the 2008 recession, home baking ingredient sales increased 32% year-over-year in the quarter preceding the official recession declaration. Store brands and generic alternatives begin outpacing their name-brand counterparts, with market share shifts accelerating most dramatically in staple categories. This follows Engel's Law, which asserts that "consumers with higher incomes spend a smaller share of their income on food than lower-income consumers," meaning "a recession or loss of income will increase the importance of food in consumers' overall budget." So, what categories do we expect to be impacted in a negative way? Ready-made gourmet meals, premium frozen dinners, and specialty pre-prepared items are among the first casualties of belt-tightening. Craft beers, premium coffee drinks, and non-essential beverages see consumption declines as consumers revert to basics. Many recession-friendly foods—like canned soups, simple pastas, frozen pizza, and basic baked goods—evoke childhood memories of simpler times. This nostalgia factor explains why established brands with generational loyalty often weather recessions better than newer alternatives. Forward-thinking food companies and retailers can leverage these consumption patterns in several ways. For CPG, this pre-recession period offers ideal timing to launch value-oriented line extensions or family-sized packaging options rather than premium innovations. A study published in Appetite examined relationships between food consumption patterns and economic growth found that for low income countries, GDP increase is accompanied by changes towards food consumption patterns with large gaps between supply and actual consumption - insights that can help manufacturers target appropriate markets during economic transitions. Distributors and retailers should adjust inventory planning to accommodate increased demand for shelf-stable basics while reducing exposure to discretionary food categories. LABEL6-4b/C/29MAY97/FD/MACOR Private labels and house brands are taking over supermarket ... More shelves. Chronicle Photo: Michael Macor (Photo By MICHAEL MACOR/The San Francisco Chronicle via Getty Images) When consumers are shifting toward value and comfort, marketing messages emphasizing indulgence or exclusivity risk tone-deafness. Today's economic environment shows several troubling parallels to previous pre-recession periods. Recent market research indicates a 17% year-over-year increase in private label food purchases, accelerating pasta and rice consumption, and declining sales of premium prepared foods—all classic warning signs. The U.S. Bureau of Economic Analysis recently reported the monthly international trade deficit, with exports decreasing in January from $130.7 billion to $122.7 billion in February that's -6.1% and imports less than $0.1 billion, indicators that has historically preceded economic contractions. In these turbulent and uncertain economic times, food companies and retailers that monitor and respond to these subtle shifts in food consumption gain valuable lead time to adjust strategies before competitors who wait for official economic declarations. Understanding not just what consumers are buying but why these patterns emerge, they can position their brands to maintain customer loyalty and market share even as spending habits change. The humble grocery cart, it turns out, may be one of our most reliable economic forecasting tools—as long as we take the time and insights to observe and understand what's in it!
Forbes
17-04-2025
- Business
- Forbes
Despite Sell-Off, UnitedHealth Group CEO Touts Fast-Growing Businesses
In this photo, UnitedHealthcare health insurance company signage is displayed on an office building ... More in Phoenix, Arizona on July 19, 2023. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) The surprising news that UnitedHealth Group was lowering its profit forecasts for 2025 shocked Wall Street and investors but the company still made more than $6 billion and is growing rapidly. UnitedHealth Group chief executive officer Andrew Witty pleaded his case with analysts and investors Thursday morning after the company's first quarter earnings report that revealed a big drop in the company's forecasted earnings per share. UnitedHealth lowered its '2025 performance outlook established in December 2024 to net earnings of $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share.' That compares to a forecast affirmed in January that said net earnings would be '$28.15 to $28.65 per share." The stock was pummeled, which is something that rarely, if ever, happens to a company like UnitedHealth, which owns the nation's largest health insurer in UnitedHealthcare and also Optum, one of the nation's largest healthcare services companies. Optum owns an array of physician practices, outpatient care clinics and others sides and OptumRx, one of the biggest pharmacy benefit managers in the country. Shares of UnitedHealth were down more than 20% by early afternoon trading on the New York Stock Exchange on a day stocks were down generally after Donald Trump lashed out at Federal Reserve Chairman Jerome H. Powell. The company reported net income of $6.3 billion in the first quarter compared to a $1.4 billion loss in the first quarter of 2024. Revenues grew by nearly $10 billion to $109.6 billion in the first quarter. But the company is seeing rising costs in its Medicare Advantage plans, which provide benefits for seniors who are flocking to healthcare services far more than the company anticipated. 'In UnitedHealthcare's Medicare Advantage business we had planned for 2025 care activity to increase at a rate consistent with the utilization trend we saw in 2024,' Witty told analysts. 'Instead though, first quarter 2025 indications suggest care activity increased at twice that rate. Increases in physician and outpatient services were most notable, and inpatient to a lesser extent.' UnitedHealth said its medical care ratio, or MCR, which is the percentage of premium revenue that goes toward medical costs was 84.8% compared to 84.3% in 2024. UnitedHealth, like other insurers, enjoyed much lower MCRs during the Covid-19 pandemic when patients put off seeing their doctor or avoided healthcare altogether during the shutdowns of 2020. 'The full year 2020 medical care ratio of 79.1% declined from 82.5% in 2019' due in part to 'disrupted care patterns earlier in the year,' UnitedHealth Group said in its full-year earnings report in 2020, the year Covid began its spread. Meanwhile, the federal government is slowing spending on Medicare Advantage and there's speculation that the Trump administration may further cut Medicare spending to pay for tax cuts. To blunt the federal government's moves, Witty said the following: All of these commitments made by Witty come as the company adds customers across its businesses that include not only UnitedHealthcare's Medicare Advantage plans, but Medicaid plans for low income Americans and medical care providers under the Optum umbrella. 'UnitedHealthcare's (Medicare Advantage) business is on pace to serve an additional 800,000 people this year,' Witty said of a business that already has more than 8.2 million enrollees. 'Optum Health is on track to add 650,000 net new patients to value-based care arrangements. In Medicaid, we are growing and continue to see positive momentum in closing the gap between people's health status and state rates and we are appreciative of our state customers for the ongoing productive discussions.'
